The interest rate for tax overpayments and underpayments will rise by 1 percent for the calendar quarter beginning April 1, 2005, according to the Internal Revenue Service. The second quarter rate for noncorporate overpayments and underpayments is 6 percent. The interest rate for corporate overpayments is 5 percent, or 3.5 percent for the portion of a corporate overpayment exceeding $10,000. The rate is 6 percent for corporate underpayments, or 8 percent for large corporate underpayments. The interest rates are computed from the federal short-term rate based on daily compounding determined during January 2005.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access